I saw the headline and assumed the story was going to be that management decided that computer memorization was copyright infringement. Glad it was just a computer acting like a teenager and cursing at the dinner table.
There's a certain human element there that makes this really, really amazing -- a machine with actual personality, molded by what it picks up from its environment. It's like a baby, learning to speak.
According to the ToS[1], the dictionary and its definitions are the property of its creators. I guess each individual Urban Dictionary editor has the right to sue IBM for unauthorized use of their content? There's nothing in there forbidding anyone from automatically scraping the site using a bot though.